Can I apply for 2 loans?

Davyly

Don't pay just £1 per month as advised above. You'll be below the minimum payment and will end up with defaults. You won't get any loans then as your CRF will be wrecked for the next 6 years.

Apples2

Davyly wrote: »

Don't pay just £1 per month as advised above.

He wasn't, he was advised to pay minimum payment PLUS £1.

Caz3121

Davyly wrote: »

Don't pay just £1 per month as advised above. You'll be below the minimum payment and will end up with defaults. You won't get any loans then as your CRF will be wrecked for the next 6 years.

OP was advised to make "Make minimum payment plus £1 on all the cards already" which is good advice in this situation

worried48

Why plus £1?

Clive_Woody

worried48 wrote: »

Why plus £1?

TO pay off outstanding balance quicker, ideally more than £1 but aim for more than minimum payment each month.

bigadaj

Clive_Woody wrote: »

TO pay off outstanding balance quicker, ideally more than £1 but aim for more than minimum payment each month.

An extra quid a month is still going to take years. The normal reason for recommending paying by an additional pound is to avoid markersfor minimum payment on your credit file, as this may be considered a sign of financial stress and so a poorer credit risk, less options, higher rates etc

Thrugelmir

Saver1011 wrote: »

I can afford repayments of £750 a month, am a homeowner and earn c.£50k a yr.

Many thanks for any advice on the best way to proceed.

Take your budget apart and find/make savings to tackle your debt. Otherwise you are going to spend a long time on the hamster wheel of debt repayment. Consolidation loans aren't the solution. The real solution is your own hands and actions.

CKhalvashi

bigadaj wrote: »

An extra quid a month is still going to take years. The normal reason for recommending paying by an additional pound is to avoid markersfor minimum payment on your credit file, as this may be considered a sign of financial stress and so a poorer credit risk, less options, higher rates etc

Although with the recommendation I've given, minimum payments are still going to be creeping to £870 a month (assuming average 24% interest + 1% minimum payment).

I find that between £1500 and £2000 leaves my current account each month (although I live well, have a large house, and don't have a mortgage), so if OP could cut back to spending £1500 a month in total outgoings (assuming single, renting, no kids), this would leave £600ish to clear the cards, and that's just the first month.

After a year of throwing £600 at the cards each month (not working out the interest monthly for simplicity), with the cards remaining at 24% average, OP will have paid £7200 from the cards, and the minimum payment will be £654; leaving £22000ish of debt left. This means that £800 a month could be thrown at the cards in year 2, £1050ish in year 3 etc.

A friend of mine is earning around £1100 a month after tax, and paying a £600/month mortgage from this, with no reliance on the state/anyone else, so it's certainly possible to live on small sums. I think that this could be a 4-5 year job, but it would be worth it for OP in the end.

CK

scottishblondie

worried48 wrote: »

Why plus £1?

It's to avoid the "minimum payment" marker on your credit report, rather than to pay it off quicker.

worried48

Is there a minimum payment marker? I had all my cards reading "yes" against "minimum payment?" and I rarely pay exactly the minimum - at one stage I was paying them off nicely (in full every month) but normally I've at least been paying a small amount over the minimum, rounding up to the nearest ten pounds, for example. I assumed "minimum payment?" meant "was at least the minimum paid?"
Would be interested to learn more about this.